Silver prices rise for four consecutive days, with spot premiums steady and trading weak [SMM Daily Review]

Today, SMM’s 10:00 a.m. price for the Shanghai Gold Exchange Ag (T+D) was 16,809 yuan/kg, with a premium/discount range quoted from TD parity to +20 yuan/kg and an average of +10 yuan/kg.

On the macro front, the US-Iran agreement entered its second phase, with Iran able to immediately resume crude oil exports. Crude oil plunged, dragging down the commodity sector. However, gold rose for the fourth consecutive day. A World Gold Council survey showed that more central banks plan to increase their gold holdings, providing support for precious metals. The US Fed’s interest rate decision at 2:00 a.m. tomorrow (June 18) will be the biggest risk event this week.

Spot market side, overall consumption was notably weak today, but as the holiday approached, some suppliers had cleared their inventory. Combined with long-term contracts locked in and export quotas reserved, willingness to sell was weak. Quoted prices held steady from the previous day, while price spreads remained wide. In Shanghai, morning quotes were mostly from TD parity to +20 yuan/kg, with actual transactions skewed to the lower end and market trading volume thin. In other regions, low-priced cargoes were largely cleared, and smelter quotes mostly hovered around parity to +10 yuan/kg. The market’s premium/discount quote against the most-traded SHFE 2608 contract was -60 to -40 yuan/kg today.

Overall, geopolitical tensions and Fed policy continued to wrestle this week, and the market awaited signals from the Fed meeting for guidance. Spot premiums held steady, but actual transactions tended to weaken. Going forward, attention should be paid to new order demand and changes in suppliers’ selling sentiment.